Silver Price Forecast – Silver markets break down on Monday to start the week

The Silver markets broke down significantly during the day on Monday, losing 1.5% by the time the Americans came on board. The Silver markets are reacting to a lot of concern dealing with the trade war heating out between the United States and China, and it’s likely that the US dollar will strengthen as a result. · FX Empire

Christopher Lewis

Updated Mon, Jul 2, 2018, 10:19 PM

Silver markets broke down during the trading session on Monday, losing over 1.5% by the time the Americans got on board, reaching down towards the $15.80 level. The market looks likely to continue to go even lower though, and I think that short-term rallies would be nice selling opportunities. The $15.50 level underneath is massive support from the longer-term charts, and an area where I believe that longer-term investors are pouring a lot of money into. I continue to like silver longer-term, but I recognize that as long as we have concerns out there involving trade wars, the US dollar will strengthen and put bearish pressure on this metal, and of course Gold.

Market participants continue to buy the metal at the $15.50 level, which is a major support level going back many years. I think that it is a zone that extends down to the $15 level, so buying physical metal in that general vicinity is a longer-term investment that many of my friends have been doing. The alternate scenario is that we turn around and break above the $16.15 level, which would be bullish for short-term trades as well. Regardless, if you are short-term trader you can probably expect some type of bounce from the $15.50 level as well in the futures markets, so short-term players may be looking to get involved there as well. Between now and then, it is a sellers’ market though.